ECC approves sale of 500,000 tons of wheat at reduced prices

February 25, 2026 (MLN): The Economic Coordination Committee (ECC) approved the sale of 500,000 metric tons of wheat from state reserves at reduced reserve prices after an earlier auction attempt failed to attract sufficient bids, a move aimed at easing mounting storage costs and managing surplus stocks.

The decision was taken at a meeting held at the Finance Division and chaired by Finance Minister Muhammad Aurangzeb.

The wheat, held by the Pakistan Agricultural Storage and Services Corporation (PASSCO), will be disposed of through competitive bidding on a First-In-First-Out (FIFO) basis, according to the press release. 

The ECC set revised reserve prices at Rs4,150 per 40 kg for locally procured wheat and Rs3,800 per 40 kg for imported wheat.

The committee that a previous attempt to offload the stock at higher, previously approved reserve prices could not be finalized due to lower-than-expected bids.

With significant quantities in storage and rising carrying costs, the reduction in reserve prices is expected to facilitate quicker clearance of inventory and reduce fiscal pressure linked to warehousing and financing expenses.

The disposal of wheat stocks comes at a time when Pakistan is managing ample domestic supply following strong procurement cycles, while also balancing the financial burden of maintaining large public-sector inventories.

The move could influence domestic wheat prices and ease liquidity constraints tied to government-held commodities, particularly if the bidding process draws competitive participation from flour mills and private traders.

Separately, the ECC approved a Technical Supplementary Grant of Rs536 million for Public Sector Development Programme (PSDP) projects previously handled by the defunct Pakistan Public Works Department (Pak-PWD).

The funds will be transferred to the provincial governments of Punjab and Khyber Pakhtunkhwa to ensure continuity of specific ongoing projects in line with legal and constitutional requirements.

The committee also reviewed a summary from the Petroleum Division concerning a fact-finding report on a Deed of Settlement with Cnergyico PK Limited over delayed payments of Petroleum Levy.

The matter was returned with directions for a more comprehensive presentation at a subsequent meeting.

The session was attended by Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer Hussain, Investment Minister Qaiser Ahmed Sheikh and other senior officials.

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